Ftse 100 Index

FTSE 100 Index: A Comprehensive Guide

What is the FTSE 100 Index?

The FTSE 100 Index, also known as the Footsie, is a stock market index that tracks the performance of the 100 largest companies listed on the London Stock Exchange by market capitalization.

The index is a widely followed benchmark for the UK stock market and is often used as an indicator of the overall health of the UK economy.

How is the FTSE 100 Index Calculated?

The FTSE 100 Index is calculated based on the total market capitalization of the 100 companies included in the index.

Market capitalization is calculated by multiplying the number of shares outstanding by the current share price.

The weightings of the companies in the index are based on their market capitalization, with the largest companies having the greatest impact on the index's performance.

What are the FTSE 100 Index Constituents?

The constituents of the FTSE 100 Index are reviewed every quarter.

At each review, companies may be added or removed from the index based on their market capitalization.

The current FTSE 100 Index constituents can be found on the FTSE Russell website.

How to Invest in the FTSE 100 Index

There are a number of ways to invest in the FTSE 100 Index.

One way is to buy shares in one or more of the companies included in the index.

Another way is to invest in an exchange-traded fund (ETF) that tracks the performance of the FTSE 100 Index.

FTSE 100 Index Performance

The FTSE 100 Index has a long history of growth.

Over the past 10 years, the index has returned an average of 7% per year.

However, the index is not immune to volatility.

In 2020, the index fell by over 30% during the COVID-19 pandemic.

Despite this volatility, the FTSE 100 Index has rebounded and is currently at record highs.

Conclusion

The FTSE 100 Index is a widely followed benchmark for the UK stock market.

The index is composed of the 100 largest companies listed on the London Stock Exchange.

The FTSE 100 Index has a long history of growth, but it is not immune to volatility.

There are a number of ways to invest in the FTSE 100 Index, including buying shares in one or more of the companies included in the index or investing in an ETF that tracks the performance of the index.